Canadian forex review: C$ strengthens

By Commodity News Service Canada

WINNIPEG, August 15 – The Canadian dollar strengthened against its US counterpart on Thursday, finding spill over support from the rally seen in gold, analysts said.

Other commodity prices, including crude oil and copper, were also stronger, which helped to further underpin the Canadian dollar.

The Canadian currency was quoted at US$0.9705, or US$1=C$1.0304 at the close on Thursday, which compares with Wednesday’s North American close of US$0.9682, or US$=C$1.0328.

The Canadian dollar also moved higher in reaction to the weakening US dollar, which fell along with a sell-off seen in the US stock market, brokers said.

Traders were looking ahead to Friday, when manufacturing and international trade reports will be released.

Canadian bonds moved lower, following the losses seen in the US Treasury market. Better than expected US jobless claims data was also bearish, traders said.

The two-year bond yielded 1.214% late Thursday, from 1.204% late Wednesday. The 10-year bond yielded 2.678%, from 2.629%. Bond yields fall as their prices rise.